Europe dips, America rises | Calamatta Cuschieri

Global markets searched for direction on Monday following last week’s sizeable rally, as markets worldwide traded mixed during the session.

European stocks were slightly lower, after a downbeat reading on German industrial output. The Stoxx Europe 600 was in the red, but let’s not forget that the benchmark on Friday gained 1% for its biggest percentage rise in three weeks.

But this gloomy mood didn’t ripple onto American markets. It was yet another good day for the Dow Jones Industrial Average, as it hit an intraday record and extended its streak of such closing highs to nine. The 30-stock index got a lift from Boeing, which contributed most of the gains. The S&P also ended at a record high as materials outperformed and technology stocks were higher. The Nasdaq was also in the green on Monday, logging its biggest one day percentage rise since 19 July.

Paddy Power Betfair and PostNL struggle

Losses from Paddy Power Betfair and PostNL offset gains from basic resources and energy stocks on Monday. Shares of the gambling film Paddy Power Betfair slipped more than 6% in afternoon deals after the company said its current Chief Executive Breon Corcoran is stepping down after 16 years with the company. Paddy Power names Peter Jackson as his successor.

Meanwhile, shares of PostNL sank 5% after the parcel delivery company reportedly said quarterly profit would come in at the bottom half of its expected range.

Tesla planning a Bond offering

Tesla Inc. is about to make its debut to the primary corporate bond market, as Elon Musk bolsters his company’s balance sheet amid an audacious bet on a more affordable electric car.

The automaker plans to offer $1.5 billion in senior unsecured notes that will be due in 2025 according to a statement. Tesla said it intends to use the proceeds to support its Model 3 while will be its cheapest model to date. This would also be the company’s first sale of non-convertible bonds.

Shares of Tesla hovered around the flat line, eventually closing slightly lower at $355.17 during Monday’s session.

Oil slips

Oil futures edged lower on Monday on concerns about major oil producers wavering commitment to output caps, and ahead of a meeting of the Organisation of the Petroleum Exporting Countries.

The two-day gathering in Abu Dhabi will discuss member’s compliance level to the output pact the cartel inked with 10 other oil suppliers, including Russia, in late 2016. The deal so far hasn’t produced meaningful effects to tamp down global output of inventories. One major development the market will be watching out for in the OPEC meeting is if Libya will join the agreement to cap output.

On the New York Mercantile Exchange, crude futures for delivery in September were slightly off, trading at $49.34 a barrel.

Disclaimer:

This article was issued by Rebecca Naudi, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.